What happens to the funds raised by Insolvency Practitioners (IPs) after they are appointed as Administrators or Liquidators? This is a mystery to almost everyone outside the insolvency profession and is so often the source of huge misunderstanding and upset amongst those stakeholders who find themselves at the end of the queue for distributions. The best way is to look
Shocking corporate insolvency figures for March just published by the Insolvency Service have revealed the magnitude of the problems faced by businesses up and down the UK as the ending of the government’s support scheme for energy costs on 1 April 2023 approached. The comparisons with past business failures figures is sobering: March 2023 was up 38% on the previous
The recent news that one of the UK’s best run and most respected businesses predicts that its sales and profits will fall back in 2023 will come as alarming news for even the most optimistic entrepreneur. Next has an abundance of buying power, economies of scale and the resources to invest in AI to improve efficiency – and still it
Having successfully navigated its way through the Commons, The Economic Crime and Corporate Transparency Bill is now passing through the Committee stage in the House of Lords, with a further three stages before it receives Royal Assent, later this year. The intention behind the Bill is to introduce wide ranging reforms to address economic crime and counter abuses of our
Fortunately, few people have any direct experience of a company failure. When they do, the priority ‘waterfall’ for distribution of what’s left in the pot after a business has gone through Administration or Liquidation comes as a mystery. In an ideal world, there would be enough money to go round, but, in reality, it is rarely that straight forward. Due
So far in our series on what a formal insolvency does to a previously solvent balance sheet and how it impacts stakeholder recoveries, we have looked at overall principles, shrinking non-current asset values, diminishing current asset recoveries and ballooning liabilities. Now we turn to the contentious issue of the cost of an insolvency process. Unfortunately, there is little understanding in
